The Influence of ESG Disclosures on Firm Value in Thailand

Abstract

Objective – The study aimed (1) to investigate the extent and level of environmental, social and governance (ESG) disclosures of listed companies in Thailand Sustainable Investment (THSI) group from the Stock Exchange of Thailand (SET), and (2) to examine the influence of ESG disclosures on firm value. Methodology/Technique – Population and samples were 60 listed companies in THSI group from the SET. Content analysis by word counting was used to quantify the extent and level of ESG disclosures in corporate annual reporting during 2015 to 2019, while firm value was collected by the market price. Descriptive analysis, correlation matrix, and multiple regression were used to analyze the data from the SET. Findings – As the results, the extent and level of environmental, social, and governance disclosures were 309.91, 1196.12, and 1197.84 average words. The most common ESG disclosure was governance disclosure following by social and environmental disclosures. Moreover, the study found the positive influence of environmental and social disclosures on firm value, while there was a negative influence of governance disclosure on firm value. Novelty – This study is the first THSI group study of ESG disclosure in Thailand. Type of Paper: Empirical Keywords: ESG Disclosures; Firm Value; Thailand. Reference to this paper should be made as follows: Yordudom, T; Suttipun, M. (2020). The Influence of ESG Disclosures on Firm Value in Thailand, J. Fin. Bank. Review, 5 (3): 108 – 114. https://doi.org/10.35609/jfbr.2020.5.3(5) JEL Classification: M40, M41, M48.